Market volatility forces complex CPDO products to unwind

By

Radi Khasawneh

Updated: October 15, 2008 2:27 p.m. GMT

Three complex vehicles for investing in debt, issued at the height of the bull market, have been forced to unwind their positions after the market volatility pushed the value of the portfolios below a key threshold and ratings on the products were downgraded to default.

Each of the constant proportion debt obligation structures issued an initial $100m (â¬73m) in notes for investment in a portfolio made up of equal proportions of the...